Speaking on CNBC’s Squawk Box Europe on Tuesday, Dwane said investors are being forced to hold assets where negative real rates of return are “eating into your ability to protect the real purchasing power of your savings.”

With government and private debt levels so high, Dwane believes central banks across the world will eventually create inflation in a bid to “wash away the excessive debt binge.” With so-called safe-haven bond markets offering such low returns, a significant rise in inflation would extenuate investors loss of purchasing power on their savings.

Following double digit returns for stock markets since June, Dwane questions why investors have bid up stocks without any visible improvement in the global macroeconomic situation or corporate earnings.

“Europe has ralliedmaybe because there was no one left to sell,” said Dwane who believes positioning had become so negative it was in the price.

The other factor boosting confidence has been ECB boss Mario Draghi’sassertion that he would do “whatever it takes” to protect the euro but Dwane believes the central bank head will not offer peripheral governments a free lunch.

“In my view he has tightened the clause of conditionality,” said Dwane who believes Draghi is only offering support for Spain and Italy if they follow through on austerity measures.